Dow Jones Industrial Average continues to recover ground on Wednesday

• Dow Jones extends into a second day of recovery after recent backslide.
• Markets have shrugged off recession fears, back to waiting for Fed cuts.
• Rate markets pricing in a double cut in September, two more to follow in 2024.

The Dow Jones Industrial Average (DJIA) Found further room on the high end on Wednesday as market sentiment recovers its footing and equities begin the slow climb back up after a three-day bearish plunge that kicked off last week. Indexes still remain on the low end of recent price action, but bullish recovery flows are dragging the Dow Jones back up above 39,200.00 on Wednesday.

Investors briefly became concerned about the very real chance of a broad recession within the US economy, sparked by a downside tilt to the latest batch of growth and labor figures. With the latest rough patch in the rearview mirror, markets are back to keeping hopes pinned for a September rate cut from the Federal Reserve (Fed).

At the current cut, rate traders are pricing in roughly two-to-one odds of a 50-basis-point rate trim from the Fed on September 18, with a further two cuts expected through the rest of 2024. According to the CME’s FedWatch Tool, rate probabilities see an 83% chance of the Fed’s benchmark fed funds rate hitting 425-450 basis points by the end of December.

Dow Jones news

Nearly all of the Dow Jones’ listed equities are in the green on Wednesday, with most losses concentrated in Amgen Inc. (AMGN). Amgen fell -5.33% after reporting a mixed Q2 financial outlook, but investors are hopeful that Amgen’s weight loss drug competitor to other dominant names in the burgeoning field will help bolster the drugmaker in the future.

Apple Inc. (AAPL) is on the high end for Wednesday, climbing 2.4% to $212.22 per share as the tech company’s stock recovers from a recent downside push after it was revealed that investing giant Warren Buffett had sold off shares in Apple, dragging Apple’s share of Berkshire Hathaway’s total portfolio down to 30% in Q2 2024 from 49% in Q4 2023.

Dow Jones price forecast

The Dow Jones is on pace to extend a bullish recovery from a near-term floor just below 38,500.00. Despite a three-day plunge that dragged the major index down over 6.5%, bids are stepping back into the chart to halt declines and price action continues to hold on the north side of the 200-day Exponential Moving Average (EMA) at 38,092.73.

The Dow Jones is still on the low side of all-time highs set at 41,371.38 in July, but bulls are dragging prices back towards the 50-day EMA at 39,606.00.

Dow Jones daily chart